Despite being a growing reservoir of funds under management, this critically important pool of capital is confronting mounting problems collating and disseminating key data in a timely manner.
The ratings house is pinning its growth strategy on a revamped methodology that increases the emphasis on governance to 25 per cent – a timely move considering APRA’s proposed reforms.
KiwiSaver passes $32b as Aussies play for position
(pictured: David Chaplin)
The KiwiSaver market has passed NZ$34 billion ($A32.3 billion) in total assets, making it the largest pool of retail money in New Zealand and representing more than half the country’s population as members. But the number of providers is shrinking.
The annual study by Investment News NZ publisher David Chaplin shows, however, that growth has slowed slightly in the past year – with $5 billion of total flow plus returns compared with the previous year’s $6 billion. Four providers exited the market and one joined, a Mercer fund, leaving the total number at 30 as of March this year.
But a new law gas seen KiwiSaver providers, as well as the broader NZ investment industry, experience some restructuring in the run-up to the December 1 implementation date.
Chaplin says: “It’s clear from the provisional data that AMP and the big four banks have this game in the bag.” It’s not dissimilar from the Australian retail super market, with three of the Australian four well represented. The NZ rankings are: ANZ ($8.34 billion), ASB ($5.45 billion), AMP ($3.99 billion), Westpac ($3.89 billion), Fisher Funds ($2.99 billion).
But Chaplin believes the consolidation trend among KiwiSaver providers has probably run its course, and 18 of the remaining funds having assets of more than $100 million.
“While ANZ has cemented its place at the top of the table – accounting for about a quarter of the entire KiwiSaver market – there is some tussling for the minor rankings: Westpac is making a move on third-placed AMP and BNZ, a latecomer to the game, has racked up impressive growth figures in the race to catch up with its bank buddies.
“Most of the mid-tier schemes also appear reasonably well-established in their respective niches with perhaps one or two potential takeover targets.”
For a copy of the full report, which includes all data in Excel spreadsheet form (members, assets, fees and charges, investment returns and other metrics) contact: E: [email protected] or phone: +64 6 878 4295. Price is NZ$299, incl. GST (A$285).
